IAS 8 requires all errors that relate to prior reporting periods to be corrected by adjusting the opening balance of retained earnings and restating comparative information.

Question

Quizplus · Accepted Answer

This is a correct statement according to International Accounting Standard 8 (IAS 8) - Accounting Policies, Changes in Accounting Estimates and Errors. The standard requires that if an error is identified in a prior reporting period, the correction should be made by adjusting the opening balance of retained earnings in the earliest comparative period presented and restating comparative information.

IAS 8 Requires All Errors That Relate to Prior Reporting